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BC New Home Buyers' Bonus

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British Columbia-> Personal Tax Credits -> BC First-Time New Home Buyers' Bonus

BC First-Time New Home Buyers' Bonus - Refundable

This was a temporary tax credit, which was available for new home purchases from February 21, 2012 to March 31, 2013.  It was a one-time refundable personal income tax credit worth up to $10,000.

Eligible buyers

You will qualify as a first-time new home buyer if

bullet you purchase or build an eligible new home located in BC;
bullet you, or for couples, you and your spouse or common law partner, have never previously owned a primary residence;
bullet you file a 2011 BC resident personal income tax return, or if you move to BC after December 31, 2011, you file a 2012 BC resident personal income tax return (not eligible if you move to BC after December 31, 2012)
bullet you are eligible for the BC HST New Housing Rebate; and
bullet you intend to live in the home as your primary residence.

Eligible new home

An eligible new home includes newly constructed and substantially renovated homes where HST is payable.  The home can be purchased from a builder or owner built.  The written agreement of purchase and sale must be entered into on or after February 1, 2012, with ownership or possession transfer before April 1, 2013, or for owner-built homes, with construction of the home complete, or the home occupied, before April 1, 2013.  To qualify, no one else may have claimed a bonus in respect of the home.

Maximum amount

The bonus is equal to 5% of the purchase price of the home, or in the case of owner-built homes, 5% of the land and construction costs subject to HST, to a maximum of $10,000.

The bonus will be phased-out for higher income earners, based on an individual's/couple's net income on line 236 of the income tax return, using the following formula:

bullet Single individuals - bonus reduced by 20% for income over $150,000, and reduced to zero at $200,000 net income
bullet Couples - bonus reduced by 10% for family net income over $150,000, and reduced to zero at $250,000 family net income.

The refundable tax credit is not claimed when the personal tax return is filed.  Application must be made to the BC Ministry of Finance to receive the bonus.  Forms are available on the Ministry of Finance web page BC First-Time New Home Buyers' Bonus Forms and Guides and New Home Buyers' Bonus.

See also:

bullet GST/HST Rebate for New Housing and Substantial Renovations
bullet BC Seniors' Home Renovation Tax Credit - Refundable
bullet Federal and Provincial Home Renovation Tax Credits

Revised: December 22, 2016

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